Index Disclosure

The Accumulation Protector Plus^SM Annuity includes a volatility-controlled index, the Momentum Index. A volatility-controlled index (also referred to as a risk control index) seeks to manage the fluctuations of the value of an index.  An index is generally comprised of equities, commodities, or other securities (risk components) and the index’s value increases and decreases with the price of these risk components. This increase and decrease in price of the risk components and value of the index over a short period is volatility.  

A volatility-controlled index consists of risk components and fixed income or cash (the risk-free component). If the volatility of the risk component exceeds a specified target, a volatility control index is rebalanced to reduce its allocation of the risk components and raise its allocation of the risk-free component. This may occur when the price of the risk components increases rapidly. Once the volatility is below a specified target, a volatility control index is rebalanced to raise its allocation of the risk components and reduce its allocation of the risk-free component.  The rebalancing is based on the volatility-controlled index’s rules.  These rules may require a volatility-controlled index to be allocated entirely to the risk-free component, even when the risk components prices are rising.  In a rising interest rate environment, the risk-free component may decrease in value.  The volatility-controlled index’s rules are explained in the description of the volatility-controlled index and these rules may be amended from time to time.

The volatility control feature reduces the impact of a rise and of a fall in price of the risk components.  This means that the positive change in the volatility-controlled index would be less than if no volatility-control existed and less index interest would be credited.  The volatility control also reduces the hedging costs of Sentinel Security Life Insurance Company.  Lower hedging costs may allow Sentinel Security Life Insurance Company to provide greater guarantees, cap rates, participation rates or other index crediting rate factors. 

Certain volatility-controlled indexes may also include fees in the computation of the indexes’ value.  These may include a maintenance fee based on the value of the index, and fixed transaction and replication costs.  These fees reduce the value of the volatility-controlled indexes.  These fees may also reduce the index licensing fee or the hedging costs that Sentinel Security Life Insurance Company pay. These fees are set forth in the description of the volatility-controlled index.

Solactive/Momentum Disclaimer: The Momentum Index (the “Index”) and any trademarks, service marks and logos related thereto are service marks of Solactive AG (“Solactive”).  Solactive has no relationship to the Sentinel Security Life Insurance Company, other than the licensing of the Index and its service marks for use in connection with the Accumulation Protector Plus SM Annuity and is not a party to any transaction contemplated hereby.

The rules of the Index may be amended by Solactive.  An amendment to the rules may result from, without limitation, a change to the construction or calculation rules for the Index or from Solactive determining that a change to the rules is required or desirable to update them or to address an error, omission, or ambiguity.  No assurance can be given that any such amendment would not affect parties to this document.

The Index contains embedded transaction costs and holding costs.  The Index is an excess return index, which means that it reflects the return of components net of the cost of funding a hypothetical investment in them. The Index returns are likely to be negatively affected by such costs of funding. The Index has a 0.5% per annum embedded fee deducted daily. The index fee will place a drag on the performance of the Index, offsetting any appreciation of its portfolio, exacerbating any depreciation of its portfolio, and causing the level of the Index to decline steadily if the value of its portfolio remains relatively constant.

While volatility controls may result in less fluctuation in rates of return as compared to indices without volatility controls, they may also reduce the overall rate of return as compared to products not subject to volatility controls.

The end-of-day value of the Index is published subject to the provisions in the rules of the Index. Solactive is not obliged to publish any information regarding the Index other than as stipulated in the rules of the Index.

The Index is the exclusive property of and currently sponsored by Solactive. 

The Accumulation Protector Plus SM Annuity is not in any way sponsored, endorsed, or promoted by Solactive. Solactive has no obligation to take the needs of any person into consideration in composing, determining, or calculating the Index (or causing the Index to be calculated). In addition, Solactive makes no warranty or representation whatsoever, express or implied, as to the results to be obtained from the use of the Index and/or the level at which the Index stands at any particular time on any particular day or otherwise, the quality, accuracy and/or completeness of the Index, or the advisability of or results to be obtained by using, investing in, or trading the Accumulation Protector Plus SM Annuity , and Solactive shall not be liable, whether in negligence or otherwise, to any person for any errors or omissions in the Index or in the calculation of the Index, any delayed or interrupted publication with respect to the Index, or under any obligation to advise any person of any errors or omissions therein.  The Index is compiled, maintained, and calculated by Solactive.  However, Solactive shall not be liable for the results obtained by using, investing in, or trading the Accumulation Protector Plus SM Annuity. 

Solactive has not created, published, or approved this document and accepts no responsibility or liability for its contents or use. Obligations to make payments under the Accumulation Protector Plus SM Annuity are solely the obligation of Sentinel Security Life Insurance Company.

Tax Disclaimer: Solactive does not provide any tax advice.  Any tax statement herein regarding any US federal tax is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding any penalties.  Any such statement herein was written to support the marketing or promotion of the transaction(s) or matter(s) to which the statement relates.  Each taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor. Notwithstanding anything to the contrary herein, each party (and each of their employees, representatives, or other agents) may disclose to all persons, without limitation of any kind, the U.S. tax treatment and U.S. tax structure of any transaction that may described or included within the information contained herein relating to such U.S. tax treatment and U.S. tax structure.  For this purpose, the tax treatment of a transaction is the purported or claimed U.S. federal income tax treatment of the transaction, and the tax structure of a transaction is any fact that may be relevant to understanding the purported or claimed U.S. federal income tax treatment of any transaction.

ERISA: You understand that (i) Solactive neither  has or exercises investment discretion with respect to any assets on behalf of any employee benefit plans or individual retirement accounts (collectively, “Plans”) that may be involved with the purchase, holding, or redemption of a security, (ii) Solactive is not undertaking to provide impartial investment advice or give advice in a fiduciary capacity on behalf of such Plans within the meaning of the U.S. Department of Labor’s final regulation defining “investment advice” for purposes of the Employee Retirement Income Security Act of 1974, as amended and Section 4975 of the Internal Revenue Code of 1986, as amended, and (iii) the information or communication provided herein or otherwise to the Plans or a fiduciary on behalf of any of the Plans is intended to be, and should be construed as, general information, and it does not and will not take into account your legal, regulatory, tax, business, investment, financial, accounting or other needs or priorities with respect to any Plans.

MerQube/Diversified Disclaimer: Neither MerQube, Inc. nor any of its affiliates (collectively, “MerQube”) is the issuer or producer of Accumulation Protector Plus SM Annuity and MerQube has no duties, responsibilities, or obligations to investors in Accumulation Protector Plus SM Annuity.  The index underlying the Accumulation Protector Plus SM Annuity is a product of MerQube and has been licensed for use by Sentinel Security Life Insurance Company.  Such index is calculated using, among other things, market data or other information (“Input Data”) from one or more sources (each such source, a “Data Provider”).  MerQube® is a registered trademark of MerQube, Inc. These trademarks have been licensed for certain purposes by Senitnel Security Life Insurance Company in its capacity as the issuer of theAccumulation Protector Plus SM Annuity.  Accumulation Protector Plus SM Annuity is not sponsored, endorsed, sold or promoted by MerQube, any Data Provider, or any other third party, and none of such parties make any representation regarding the advisability of investing in securities generally or in Accumulation Protector Plus SM Annuity particularly, nor do they have any liability for any errors, omissions, or interruptions of the Input Data, Diversified Macro 5 Index, or any associated data.  Neither MerQube nor the Data Providers make any representation or warranty, express or implied, to the owners of the Accumulation Protector Plus SM Annuity or to any member of the public, of any kind, including regarding the ability of the Diversified Macro 5 Index to track market performance or any asset class.  The Diversified Macro 5 Index is determined, composed and calculated by MerQube without regard to Sentinel Security Life Insurance Company or the Accumulation Protector Plus SM Annuity.  MerQube and Data Providers have no obligation to take the needs of Sentinel Security Life Insurance Company or the owners of Accumulation Protector Plus SM Annuity into consideration in determining, composing or calculating the Diversified Macro 5 Index.  Neither MerQube nor any Data Provider is responsible for and have not participated in the determination of the prices or amount of Accumulation Protector Plus SM Annuity or the timing of the issuance or sale of Accumulation Protector Plus SM Annuity or in the determination or calculation of the equation by which Accumulation Protector Plus SM Annuity is to be converted into cash, surrendered or redeemed, as the case may be.  MerQube and Data Providers have no obligation or liability in connection with the administration, marketing or trading of Accumulation Protector Plus SM Annuity.  There is no assurance that investment products based on the Diversified Macro 5 Index will accurately track index performance or provide positive investment returns.  MerQube is not an investment advisor.  Inclusion of a security within an index is not a recommendation by MerQube to buy, sell, or hold such security, nor is it considered to be investment advice.  

NEITHER MERQUBE NOR ANY OTHER DATA PROVIDER GUARANTEES THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE DIVERSIFIED MACRO 5 INDEX OR ANY DATA RELATED THERETO (INCLUDING DATA INPUTS) OR ANY COMMUNICATION WITH RESPECT THERETO.  NEITHER MERQUBE NOR ANY OTHER DATA PROVIDERS SHALL BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN.  MERQUBE AND ITS DATA PROVIDERS MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND THEY EXPRESSLY DISCLAIM ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY SENTINEL SECURITY LIFE INSURANCE COMPANY, OWNERS OF THE ACCUMULATION PROTECTOR PLUSSM ANNUITY, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE DIVERSIFIED MACRO 5 INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO.  WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL MERQUBE OR DATA PROVIDERS BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE.  THE FOREGOING REFERENCES TO “MERQUBE” AND/OR “DATA PROVIDER” SHALL BE CONSTRUED TO INCLUDE ANY AND ALL SERVICE PROVIDERS, CONTRACTORS, EMPLOYEES, AGENTS, AND AUTHORIZED REPRESENTATIVES OF THE REFERENCED PARTY.